- CHF/JPY has been in the hands of the bulls on a monthly breakout.
- The price, however, could be about to change hands on a restest of the monthly supply zone.
CHF/JPY has found support on the daily time frame which may act as a magnet on failures of the monthly supply zone. In doing so, this should give rise to a shorting opportunity with favourable probabilities.
The following is a top-down analysis from a market structure point of view and works its way into the prospects for the short side with entry from the mid-late 117 zones back in to test the mid-range target of the 116 area.
Weekly progress to the monthly supply zone
As can be seen, the price took off following the completion of the reverse head and shoulders pattern.
Daily swing-trade downside prospects
From a daily perspective, bears will be lining up for a failure at the supply zone for the possibility of a short trade back to the neckline of the W-formation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.